41. If a plant asset is sold at a gain, the gain on disposal should reduce the cost of goods sold section of the income statement.
42. Depletion cost per unit is computed by dividing the total cost of a natural resource by the estimated number of units in the resource.
43. The Accumulated Depletion account is deducted from the cost of the natural resource in the statement of financial position.
44. Depletion expense for a period is only recognized on natural resources that have been extracted and sold during the period.
45. The cost of natural resources is not allocated to expense because the natural resources are not replaceable.
46.Natural resources include standing timber and resources extracted from the ground, such as oil, gas, and minerals.
47.The depletion associated with extracting copper from a mine will be reported on the statement of financial position if the company has not yet sold the copper.
48. Costs incurred during the research phase are reported as an intangible asset on the statement of financial position.
49. Costs incurred in the development phase after technological feasibility has been achieved are expensed as incurred.
50. If an acquired franchise or license has an indefinite life, the cost of the asset is not amortized.